Rex Updates Utica Operations

Rex Energy announced Friday the results of its recent Ohio Utica Shale wells and provided an update on its operations.

Appalachian Basin -- Warrior North Prospect, Carroll County, Ohio

The G. Graham 1H, located in Carroll County, Ohio, was placed into sales from its 60-day resting period and produced at a five-day sales rate of 1,710 barrels of oil equivalent per day (boepd) (41 percent natural gas liquids (NGL), 30 percent gas, 29 percent condensate), assuming full ethane recovery and a natural gas shrink of 36 percent. The well went on to average a 30-day sales rate of 1,256 boepd (46 percent NGLs, 33 percent gas, 21 percent condensate), assuming full ethane recovery and a natural gas shrink of 36 percent. The well produced with an average casing pressure of 2,364 psi during the five-day sales period and 1,672 psi during the average 30-day sales period on a 24/64 inch choke. The well was drilled to a total measured depth of 12,098 feet with a lateral length of approximately 3,973 feet and was completed in 27 stages, utilizing the company's "Super Frac" completion technique. Based on composition analysis, the gas being produced is approximately 1,262 British thermal units.

The G. Graham 2H, located in Carroll County, Ohio, was drilled to a total measured depth of 11,776 feet with a lateral length of approximately 3,572 feet and was completed in 24 stages. The G. Graham 2H was completed utilizing a proprietary third party completion technique and preliminary results were below the company's expectations. The company is continuing to evaluate the results of the completion technique and will provide an update once its review is complete. Going forward, the company plans to utilize its "Super Frac" completion technique on all of its currently planned completions in the Appalachian Basin.

"We are pleased with the results of the G. Graham 1H, our second announced well in our Warrior North Prospect," commented Tom Stabley, Rex's chief executive officer. "It is our belief that the initial sales from the G. Graham 1H are among the best results in Carroll County to date. With over 110 additional locations on our approximately 16,000 net acres in Carroll County, we believe this result further demonstrates the potential value of our acreage position in our Warrior North Prospect."

During the second quarter of 2013, the company completed the two-well Brace West pad utilizing the company's "Super Frac" completion technique with an average lateral length of approximately 4,400 feet and currently expects the two Brace West wells to be placed into sales in early July 2013.

In the Warrior South Prospect, Rex Energy has recently placed its first three wells into sales. The company encountered additional delays in placing these wells into sales primarily due to inclement weather which delayed pipeline construction by the third party midstream provider.

The company plans to provide sales rates for these three wells once they are available.

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